The Golf GTI is now dead, but...

[Mutley75]

Regarding the point made about the price increases, without getting political (well...as much as a Tory Brexiteer can remain neutral); the pound vs the euro exchange rate has played a big part here.  For example, in May 2016 just before the referendum, £1 would buy you 1.31 euros.  At today's exchange rate, £1 will buy you 1.17 euros.

Putting that into some raw figures, lets say in 2016 a Golf GTI was 42,000 euro, that would have been £32,061.  At today's exchange rate, assuming the GTI's price has remained the same as it was in 2016 (although it hasn't!); 42,000 euros will now cost you £35,764.  So without allowing for inflation or any price increases by VAG, the GTI costs £3703 more today than it did just before the run on the pound after the referendum.

I expect the value of the pound will gradually climb again now the political situation is more stable and certain, but depending on future trade agreements, VWs may be subject to tariffs pushing the price back up again.  I'm not going to get political or open up a debate about Brexit on here, but that's an economic reality in this particular scenario.

Inflation over the same period has been relatively low at around 2/3%.  Wage rises vary wildly between public and private sectors and within specific industries.  I'm incredibly fortunate to have an excellent employer in a profitable business where those profits have resulted in annual pay rises at 2 or 3 times the rate of inflation, but a fully loaded brand new GTI is still at the very upper limit of what I am prepared to spend on a car.

I've always wanted a GTI and my only regret is that I didn't buy one ten years ago so I'd now be on my third instead of my first.  Sadly with the looks of the mk8 and the way things are heading with petrol, the mk 7.5 may well be my last.  My next car in around 3-4 years time will either be something electric or I'll pay the balloon on the GTI PCP and just keep it another 3 or 4 years on top.  Nine months in and I'm still loving every second so that option has a certain appeal.  And I'm normally someone who's fed up with a car after about six months and looking on AutoTrader before it's even had its first service!

[monkeyhanger]

Matt how is the infotainment better on the Polo when it's the same unit used in both?

Sorry, I meant the virtual cockpit screen - the polo is on a newer version (V2) with higher resolution than the MK7.5s. It'll be a cert to be on a MK8.

[Guzzle]

Doesn't the Polo also miss out on sat nav and the winter pack as standard equipment?

Not sure but are the LED headlights the curve lighting type or just the standard 'static' type?

[monkeyhanger]

I don't fully buy the exchange rate argument. If the Pound rallied up to 1.5 Euros per pound and stayed there, when do you think we'd see VW drop those prices? 3 months, 6 months, a year? Try never.

VW will sell for what they can get away with in the market they trade in. In some markets, metallic paint is free. The US is getting Wolfsburg built Golf Rs  (most of the other Holfs are built in Mexico) for about $41k (£32k), including leather, free metallic paint, and DSG option is $1100 (£850). There are a whole host of pay for options in the UK that are standard fit there - DCC, lane assist, premium Fender audio, HBA.

After the great scrappage scheme of 2008 or 2009 and VAT dropping from 17.5% to 15%, pretty much every car RRP went up £2000-£3000 to take advantage. When VAT went up to 20%, did anyone reduce their pretax prices? Nope.

Most people have had pay growth over the last 10 years of less than 20% and in the same time period, the lowest denominator Golf GTI's RRP has gone up 50%. Does that add up? Same story for wage growth across much of the Eurozone, unaffected by exchange rate.

Accessible discounts/deposit contributions are more accessible, so maybe that bullsh!t RRP infkation you see in the supermarket and furniture shops with items permanently on sale (that Oak Furnitureland £800 sideboard has always been on sale for £350) has fully filtered through to the UK new car market?

New car PCPs are seriously expensive now in relation to income.

[monkeyhanger]

Doesn't the Polo also miss out on sat nav and the winter pack as standard equipment?

Not sure but are the LED headlights the curve lighting type or just the standard 'static' type?

Yep, no Satnav or Winter pack, but it does gain selectable suspension (2 stage DCC rather than constantly adjusting), LEDs are static. I have Nav on my Polo as it was an allocation grab for a scheduled build, to dodge a long wait. I have used it 3 times in 21 months.

So a smidge more kit, marginally bigger, effectively running a £500 remap (Polo runs same turbo and EA888 3b engine), bigger wheels as standard (although 18" Brescia are a cheap option), multilink rear suspension, marginally better door cards and slightly bigger front brake disks for an extra £10k or an extra 43% (GTI Performance). Residuals on the Polo GTI slightly better too.

Not saying the Polo is better, it isn't, but 43% more money does not buy you 43% more car. The Polo looks far better value for money than a Golf GTI which is rapidly moving out of Average Joe's price range.

[SRGTD]

The Polo looks far better value for money than a Golf GTI which is rapidly moving out of Average Joe's price range.

And IMO, visually the Polo looks far better than the forthcoming mk8 Golf too.

Who knows what VW will do to the Polo when the time comes for a mid life facelift though - hopefully they won’t turn it into a fugly mini mk8 Golf and replace ‘the easy to use on the move’ buttons, switches and knobs for heating/ventilation, lighting and other often used functions with touch pads and touchscreens!

[mistac]

I've always wanted a GTI and my only regret is that I didn't buy one ten years ago so I'd now be on my third instead of my first.  Sadly with the looks of the mk8 and the way things are heading with petrol, the mk 7.5 may well be my last.  My next car in around 3-4 years time will either be something electric or I'll pay the balloon on the GTI PCP and just keep it another 3 or 4 years on top.  Nine months in and I'm still loving every second so that option has a certain appeal.  And I'm normally someone who's fed up with a car after about six months and looking on AutoTrader before it's even had its first service!


The above is so me - I have not even got mine yet - hope I feel the same once it arrives

[Guzzle]

I don't fully buy the exchange rate argument. If the Pound rallied up to 1.5 Euros per pound and stayed there, when do you think we'd see VW drop those prices? 3 months, 6 months, a year? Try never.

VW will sell for what they can get away with in the market they trade in. In some markets, metallic paint is free. The US is getting Wolfsburg built Golf Rs  (most of the other Holfs are built in Mexico) for about $41k (£32k), including leather, free metallic paint, and DSG option is $1100 (£850). There are a whole host of pay for options in the UK that are standard fit there - DCC, lane assist, premium Fender audio, HBA.

After the great scrappage scheme of 2008 or 2009 and VAT dropping from 17.5% to 15%, pretty much every car RRP went up £2000-£3000 to take advantage. When VAT went up to 20%, did anyone reduce their pretax prices? Nope.

Most people have had pay growth over the last 10 years of less than 20% and in the same time period, the lowest denominator Golf GTI's RRP has gone up 50%. Does that add up? Same story for wage growth across much of the Eurozone, unaffected by exchange rate.

Accessible discounts/deposit contributions are more accessible, so maybe that bullsh!t RRP infkation you see in the supermarket and furniture shops with items permanently on sale (that Oak Furnitureland £800 sideboard has always been on sale for £350) has fully filtered through to the UK new car market?

New car PCPs are seriously expensive now in relation to income.

I don't fully buy into the whole exchange rate thing either. Worth remembering that both VW UK and dealer overheads and profit, road tax and other on the road costs aren't subject to the exchange rate either.

[mistac]

Mutley75 - I've always wanted a GTI and my only regret is that I didn't buy one ten years ago so I'd now be on my third instead of my first.  Sadly with the looks of the mk8 and the way things are heading with petrol, the mk 7.5 may well be my last.  My next car in around 3-4 years time will either be something electric or I'll pay the balloon on the GTI PCP and just keep it another 3 or 4 years on top.  Nine months in and I'm still loving every second so that option has a certain appeal.  And I'm normally someone who's fed up with a car after about six months and looking on AutoTrader before it's even had its first service!


The above is so me - I have not even got mine yet - hope I feel the same once it arrives
[/quote]

[Guzzle]

Doesn't the Polo also miss out on sat nav and the winter pack as standard equipment?

Not sure but are the LED headlights the curve lighting type or just the standard 'static' type?

Yep, no Satnav or Winter pack, but it does gain selectable suspension (2 stage DCC rather than constantly adjusting), LEDs are static. I have Nav on my Polo as it was an allocation grab for a scheduled build, to dodge a long wait. I have used it 3 times in 21 months.

So a smidge more kit, marginally bigger, effectively running a £500 remap (Polo runs same turbo and EA888 3b engine), bigger wheels as standard (although 18" Brescia are a cheap option), multilink rear suspension, marginally better door cards and slightly bigger front brake disks for an extra £10k or an extra 43% (GTI Performance). Residuals on the Polo GTI slightly better too.

Not saying the Polo is better, it isn't, but 43% more money does not buy you 43% more car. The Polo looks far better value for money than a Golf GTI which is rapidly moving out of Average Joe's price range.

Agree with most of that, although some of the extra cost can be offset by the bigger deposit contribution and usually bigger discount on the Golf. That said though, the difference is still hard to justify if you don't genuinely need the extra space and equipment.